After releasing its second quarter 2017 industrial market report today, local business advisory firm Applied Analysis noted the Las Vegas industrial market added over 2.4 million square feet of newly constructed space and registered net absorption of nearly the same number. These developments edged the vacancy rate down to 6.9 percent for the second quarter of 2017. Compared to the prior quarter (Q1 2017), the vacancy rate declined 10 basis points (-0.1 percentage points), and compared to a year ago (Q2 2016), the rate decreased by 30 basis points (-0.3 percentage points).

During the second quarter, the industrial market experienced the largest amount of new inventory in a single quarter with 2.4 million square feet of completions. Chief among these was the completion of Amazon’s new 785,500-square-foot fulfillment center located at Northgate Distribution Center at 4550 Nexus Way. Switch completed another building as part of their ongoing data center expansion at 7356 Lindell Road, which added over 343,400 square feet of occupied space to the market. Moreover, Prologis Sunrise Industrial Park completed a 342,300-square-foot building at 4800 E Cheyenne Avenue – a build-tosuit for Walmart. Other notable completions included two buildings at Prologis Las Vegas Corporate Center in the north submarket, adding 260,000 square feet of inventory to the market, with one building fully leased to Dr. Pepper and Snapple and the other reportedly has space leased by Nexgistics and Muscle & Strength.

Office Market

After releasing its second quarter 2017 office market report today, local business advisory firm Applied Analysis noted that the Las Vegas office market continued to experience positive demand during the period. The vacancy rate fell to 19.3 percent during the quarter, which represents a decline of 40 basis points (-0.4 percentage points) from the prior quarter (Q1 2017). Compared to a year ago (Q2 2016), the office market vacancy rate has declined 130 basis points (-1.3 percentage points); the vacancy rate is down significantly from 25.3 percent in early 2013.

Anchored retail inventory increased slightly to 53.7 million square feet during the second quarter with the completion of the first phase of Mountain’s Edge Marketplace located at 7975 Blue Diamond Road in the southwest submarket. The center added 75,600 square feet to the market, which included the 59,300-square-foot Albertsons grocery store. The company now has 31 stores in the Las Vegas Valley.

The retail market experienced 199,600 square feet of positive net absorption during the second quarter of 2017. Burlington Coat Factory leased 48,900 square feet at Sahara Center located on the northeast corner of Sahara Avenue and Hualapai Way. In addition, Seafood City Supermarket leased 42,600 square feet in the former Sport Chalet’s space at The Arroyo Market Square located at 7230 Arroyo Crossing Parkway on the southwest corner of Rainbow Boulevard and Interstate 215. Other notable transactions include Marshalls taking 21,000 square feet of space at Best in the West located at 2050 North Rainbow Boulevard and Planet Fitness expanding their brand to The A Mall, leasing a 17,800-square-foot space at 1205 East Sahara Avenue.